Monopoly

Posted in Finance, Accounting and Economics Terms, Total Reads: 1365
Advertisements

Definition: Monopoly

Monopoly occurs when there is a single supplier for the particular product in the whole market. The characteristics of monopoly are:

  • High profits: As the firm is the only supplier in the market, hence it can take undue advantage and can charge high prices to its customers to generate high profits.
  • Price decision: The decision of the market price is made by the company by its own and not according to the competing products.
  • Entry Barriers are high: The firm who has the monopoly holds the market well and hence it is tough for a new entrant to enter the market.
  • One seller: Only one seller is present in the whole industry which serves the whole of the population and hence we can say that the seller in itself is the industry.
  • Price Discrimination: The seller can change the price, quantity supplied as much as he wants at any time.


Browse the definition and meaning of more terms similar to Monopoly. The Management Dictionary covers over 7000 business concepts from 6 categories.

Search & Explore : Management Dictionary



Share this Page on: